Fedcap Rehabilitation Services
Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
Settlement of wage-theft litigation
The wage-related class action was settled through an agreement to fund approximately $850,000 for roughly 4,000 workers.
2021
Wage-theft class action
A worker in Fedcap’s job-placement program filed a class-action lawsuit alleging that the organization had withheld wages from her and other workers.
2020
Criticism of Ontario employment-services privatization
Fedcap’s selection to lead the Hamilton-Niagara service-system manager consortium drew criticism from Ontario’s New Democratic Party and regional legislators. Critics argued that outcome-based contracting could weaken public services, exclude people with complex needs, or encourage unsuitable or premature job placements.
2018
Federal wage and benefit violations
The U.S. Department of Labor found reported violations of the McNamara-O'Hara Service Contract Act at 17 federal facilities served by Fedcap in New York and New Jersey. The issues included alleged improper payroll deductions and failure to provide required benefits. Fedcap agreed to pay approximately $2.8 million to more than 400 workers.